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Monday, February 8, 2016

Modi dedicates to nation IOC's Paradip Refinery

GIVING a further boost to Indian Oil Corporation’s refining capacity, Prime Minister Narendra Modi on February 7 dedicated to the nation the Maharatna PSU’s Rs. 34,555 crore refinery in Paradip. With this, the state-owned PSU has overtaken Reliance Industries to again become country's top refinery.
The 15 million tons per annum Paradip refinery was built over nearly 16 years. The then Prime Minister Atal Bihari Vajpayee had on May 24, 2000 laid foundation...stone of the ninth plant of IOC.
Prior to Paradip, the nation's largest oil firm’s eight refineries had a cumulative capacity of 54.2 million tons of crude oil. Paradip helped IOC overtake Reliance Industries, which has twin refineries at Jamnagar in Gujarat with a capacity of 62 million tons.
IOC, also has a subsidiary Chennai Petroleum Corp Ltd (CPCL) which operates refineries with total capacity of 11.50 million tons.
Located 140 km from Bhubaneswar, Paradip refinery is one of the most modern refineries in the world which can process cheaper high sulphur heavy crude oils. It has a complexity factor of 12.2.
It will produce 5.6 million tons per annum of diesel, 3.79 million tons of petrol and 1.96 million tons of kerosene/ATF. Besides, 790,000 tons of LPG and 1.21 million tons of petcoke would also be produced, officials said.
It was a mammoth task to build the refinery with 2.8 lakh ton of steel, equivalent to 30 Eiffel Towers or about 350 Rajdhani trains, being used in its construction. It has 11.6 lakh cubic meter of concreting equivalent to 3 times volume of Burj Khalifa, Dubai.
Pipes running to 2,400 km have been used, which is almost the length of Ganges. A Mercedes-Benz S-Class car can pass through the largest diameter pipeline of 126-inch.
The refinery sent out first consignment of products comprising of diesel, kerosene and LPG on November 22 last year.
Paradip Refinery will produce petrol and diesel of BS-IV quality and later will switch to BS-VI quality to comply with the Auto Fuel Policy. The refinery is also designed to produce Euro-V premium quality Motor Spirit and other green auto fuel variants for export to advanced countries.
With a view to earn further value addition, a polypropylene plant is under implementation at a cost of Rs. 3,150 crore and is scheduled for completion by 2017-18. The refinery also has plans to set an Ethylene Recovery Unit /Mono-Ethylene Glycol (MEG) at an estimated cost of Rs. 3,800 crore. These units are expected to be completed by 2020-21.
IOC is also evaluating the options of setting up manufacturing facilities for para-xylene, PTA and synthetic ethanol at Paradip. Subject to techno-commercial viability, these facilities may be installed in the next five to seven years’ time.
Earlier, in a bid to ensure steady supply of quality explosives used to extract coal from open-cast mines, Coal India (CIL) will be taking 50 per cent control of the entire explosives business of IOC.
These two government-owned companies have signed a memorandum of understanding (MoU), whereby 12 explosive making units of IOC will have joint ownership with CIL. “A joint venture company will be floated and is likely to start production from March 2017,” said an official in Coal India.
The detailed terms, including stake and assets transfer, are yet to be finalized.
Of IOC’s explosives units, six are located at Coal India’s subsidiary units, except Western Coalfields. Eight of these units exclusively cater to the demand of CIL. However, the total procurement is only a fourth of the miner's requirements. “We procure the rest of our demand from 20-22 other suppliers,” the Coal India official said.